Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

8 MA - Case BREEZ Corporation At BREEZ Corporation, manufacturing of Product X is accomplished by two production departments (Filling and Sealing) and two support

image text in transcribed
8 MA - Case BREEZ Corporation At BREEZ Corporation, manufacturing of Product X is accomplished by two production departments (Filling and Sealing) and two support departments (Maintenance and General Factory). BREEZ's budget for 202X is based on the following production data: o direct material: $6 per unit, o direct labour: $13 per unit. o variable manufacturing overheads: $8 per unit, o fixed manufacturing overheads: $540,000. The selling price is $59 per unit. Non-manufacturing overheads are expected to be $612,000 Fixed manufacturing overheads are allocated to the departments as follows: Filling Sealing Maintenance General Factory $225,000 $27,000 $151,200 $136.800 General Factory, which includes such cost items as heating and lightening, allocates $45,000 of its costs to Filling: $27,000 to Sealing, and the rest to Maintenance. $85,500 of Maintenance is allocated to Filling and the rest to Sealing. Fixed manufacturing overheads are absorbed at a predetermined overhead rate per unit of production for each production department. Predetermined overhead rate is based upon normal level of activity. Normal production department activity is: Direct labour hours Machine hours Production units Filling 3,600 500 90.000 Sealing 1,800 5,400 90.000 Opening balance of finished goods and direct material inventory is zero. There is no work-in-progress. Actual costs for the period were as budgeted, except for additional fixed manufacturing overhead of $119,300 in Sealing Dept. Actual production and sales volumes were 63,000 units and 56,700 units, respectively. a Calculate budgeted unit production cost if the company applies variable costing. [If necessary, round your answer to the nearest integer. Do not use spaces or thousands separators in your answers.] b Calculate the amount of under/over-absorbed overheads for the Sealing Dept. if the company applies absorption costing If necessary, round your answer to the nearest integer. Use a minus sign in case of under-absorption, e.g -1000. Do not use spaces or thousands separators in your answers.]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Reporting, Analysis And Decision Making

Authors: Shirley Carlon

6th Edition

0730363279, 9780730363279

More Books

Students also viewed these Accounting questions

Question

How can changing the deductible reduce an insurance premium?

Answered: 1 week ago

Question

What is the persons job (e.g., professor, student, clinician)?

Answered: 1 week ago

Question

1. Maintain my own perspective and my opinions

Answered: 1 week ago